Plains weather could impact wheat and cattle

Market Line January 11, 2010 Wheat futures had modest losses Monday. Egypt purchased some U.S. soft red winter wheat and weekly export inspections were above expectations. However, traders said substantially higher wheat stocks India than anyone thought, fund selling and lack of a significant weather threat in the Plains pressured wheat lower.

Traders may not see a threat to central Plains wheat but Allen Motew of QT Weather for the Linn Group does as some areas did not get much if any snow cover from a weekend storm.

Motew: “So we still are unprotected in a region that will see temperatures drop well below zero over the next 48 hours. Wind chills will be in the 15 to 30 below zero range and we have again more stress on the crop.”

On Monday Chicago March wheat down 6 ¾ cents at 7-67 ¼. March corn up 12 cents at 6-07. Portland soft white wheat by rail only, steady at 7-65 on limited bids. Club wheat premium mostly 17 cents. New crop August white wheat down four to ten cents at 7-02 to 7-45. Hard red winter 11.5 percent protein down four cents at 8-32. DNS 14% protein one to six cents lower at mostly 10-20.

Cattle futures closed higher Monday. The impact of winter storms on cattle weights and marketings in the Plains was cited as a factor. The problems with foot and mouth disease in South Korea are also seen as possibly creating more U.S. export opportunity. February live cattle up 57 cents at 106-95. March feeders up 67 at 123-42. February Class III milk up 24 cents at 14-39.

I’m Bob Hoff and that’s Market Line on Northwest Aginfo Net.

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